For family offices and ultra-high-net-worth investors, property finance decisions are rarely about headline interest rates. In 2025, the real question is strategic: whether a private bank or a specialist lender is better suited to support long-term balance sheet objectives, cross-border holdings, and complex ownership structures.
Both private banks and specialist lenders play critical roles in the UHNW lending ecosystem. Each offers distinct advantages—and distinct limitations—depending on asset type, jurisdiction, leverage profile, and broader wealth strategy.
Family offices that default to a single route often leave value on the table. Some over-rely on private banks that prioritise relationship economics over structural flexibility. Others engage specialist lenders without considering the long-term implications for refinancing, governance, or succession planning.
Willow Private Finance works independently across both markets. Our role is not to favour one channel, but to determine which is most appropriate for each asset, structure, and strategic objective.
This guide explores how private banks and specialist lenders differ in 2025, where each excels, and how family offices secure the best outcomes by using them intelligently.
Private banks view property lending as one component of a wider relationship. Loans are rarely assessed in isolation, but as part of an overall private banking mandate that may include investments, deposits, discretionary management, and broader wealth planning.
For family offices with substantial liquid assets, this model can be highly attractive. Lending terms may be flexible, leverage conservative, and pricing competitive—particularly when facilities are cross-collateralised against investment portfolios or cash holdings.
Private banks are especially strong where lending is required against prime residential property in established global markets such as London, Paris, Geneva, or Monaco. They are also well suited to portfolio-level lending, interest-only structures, and long-term facilities aligned with intergenerational planning.
However, private banks are inherently risk-averse. Their credit committees prioritise reputation, regulatory compliance, and balance sheet stability. This can limit appetite for unconventional structures, transitional assets, or properties that fall outside tightly defined criteria.
Despite their strengths, private banks are not always the optimal solution.
They can be slow-moving, particularly where assets are complex or located across multiple jurisdictions. Internal credit processes are often rigid, and exceptions can take months to approve—if they are approved at all.
Private banks also tend to prefer “clean” balance sheets. Assets held through layered corporate structures, trusts, or offshore vehicles may attract additional scrutiny or outright resistance, even where underlying risk is low.
In addition, relationship economics matter. Lending decisions are often influenced by the wider profitability of the client relationship. Family offices that are asset-rich but intentionally hold liquidity elsewhere may find terms less compelling.
Specialist lenders operate very differently. They focus almost exclusively on asset-level risk and structural execution, rather than relationship breadth.
In 2025, specialist lenders have become increasingly active in the family office space, particularly for high-value, complex, or time-sensitive transactions. They are often more comfortable with unusual assets, non-standard ownership structures, and properties that fall outside private bank policy.
Specialist lenders excel where speed, flexibility, or bespoke structuring is required. This includes short-term liquidity, bridging strategies, development exposure, or assets with planning, title, or valuation complexity.
For family offices, this can be invaluable—particularly where an opportunity is time-critical or where private banks are unwilling to engage.
While specialist lenders offer flexibility, this typically comes at a cost.
Pricing is often higher than private bank alternatives, reflecting higher capital costs and shorter-term funding models. Loan-to-value ratios may also be capped more conservatively, depending on asset type and exit strategy.
Facilities are usually transaction-specific rather than relationship-based. This means less flexibility over the long term and a greater focus on defined exit routes, such as refinancing or asset sale.
For family offices, specialist lending works best when deployed deliberately—used to solve a specific problem or bridge a strategic gap, rather than as a permanent capital solution.
One of the most important factors in choosing between a private bank and a specialist lender is the nature of the asset itself.
Prime, stabilised residential property in established markets is typically best suited to private bank lending. These assets align closely with private bank risk appetite and benefit from lower-cost, longer-term facilities.
By contrast, assets with complexity—such as refurbishment projects, mixed-use properties, short leases, or planning uncertainty—often sit more comfortably with specialist lenders, at least initially.
Many sophisticated family offices deliberately use both. A specialist lender may provide short-term funding during acquisition or repositioning, with a private bank refinance once the asset stabilises.
Jurisdiction plays a significant role in lender selection.
Private banks are strongest in core financial centres where they have established lending infrastructure. Cross-border portfolios can be accommodated, but structures must align with internal policy and regulatory frameworks.
Specialist lenders, particularly those operating in the UK, are often more agile across jurisdictions, provided security is enforceable and exit routes are clear.
Ownership structure also matters. Trust-held assets, family investment companies, and layered corporate ownership may be acceptable to specialist lenders more readily than to private banks—though at a pricing premium.
Understanding how jurisdiction and structure interact with lender appetite is critical to securing optimal terms.
At the family office level, the decision between private bank and specialist lender is rarely binary.
The real optimisation is around flexibility, control, and long-term optionality. Family offices seek to avoid over-leveraging, forced refinancing, or lender constraints that could disrupt succession planning or asset strategy.
Private banks often deliver stability and cost efficiency. Specialist lenders deliver speed and adaptability. The most effective strategies combine both—deploying each where they add the most value.
This approach aligns with the broader trend of using property debt as a balance sheet tool rather than a transactional necessity, as explored in
Why Family Offices Are Using Property Debt as a Balance Sheet Tool in 2025.
Consider a family office acquiring a prime London asset requiring refurbishment.
A specialist lender provides short-term funding to complete the acquisition quickly and support refurbishment works. Once the asset is stabilised and revalued, the facility is refinanced onto a private bank balance sheet at lower cost and longer tenure.
The result is speed without compromise, and long-term funding aligned with wider portfolio strategy.
As lending markets become more selective, the distinction between private banks and specialist lenders will continue to sharpen.
Private banks will remain conservative but competitive for core assets and strong relationships. Specialist lenders will continue to fill gaps where complexity, timing, or structure fall outside traditional criteria.
Family offices that understand how to navigate both will retain a significant advantage—accessing capital on their terms rather than lender terms.
Willow Private Finance advises family offices and UHNW clients across both private bank and specialist lending markets.
We are independent and whole-of-market, with deep relationships across private banks and specialist lenders in the UK and internationally. Our role is to structure the right solution for each asset and objective—often combining multiple lenders across a portfolio.
By aligning lending strategy with balance sheet planning, governance, and long-term intent, we ensure property finance supports your wider objectives rather than constraining them.
Q1: Are private banks always cheaper than specialist lenders?
A: Often, but not always. Pricing depends on asset quality, structure, and relationship economics.
Q2: Can family offices use both private banks and specialist lenders?
A: Yes. Many sophisticated strategies deliberately combine both for flexibility and efficiency.
Q3: Do private banks lend on complex structures?
A: Sometimes, but appetite is more limited than with specialist lenders.
Q4: Are specialist lenders suitable for long-term borrowing?
A: They are typically best used for short-to-medium-term or transitional strategies.
Q5: Does lender choice affect refinancing risk?
A: Yes. Aligning lender type with asset maturity is critical to avoiding forced exits.
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About the Author
Wesley Ranger is the Director of Willow Private Finance and has over 20 years of experience advising high-net-worth and ultra-high-net-worth clients on complex property finance. He specialises in private bank lending, specialist lender structuring, and portfolio-level strategies for family offices with UK and international property holdings. Wesley works closely with legal, tax, and wealth advisers to deliver flexible, long-term lending solutions.
Important Notice
This article is for general information purposes only and does not constitute personal financial advice. Property finance solutions for family offices involve complex legal, tax, and regulatory considerations that vary by jurisdiction and individual circumstance.
Lending availability, terms, and loan-to-value limits are subject to change and depend on detailed lender assessment. Always seek tailored advice before entering into any financial arrangement.
Willow Private Finance Ltd is authorised and regulated by the Financial Conduct Authority (FCA No. 588422). Registered in England and Wales.
